SpaceX Jumps 10% After Musk Says Starlink Could Carry 90% of Internet Traffic
Updated
Updated · Yahoo Finance · Aug 13
SpaceX Jumps 10% After Musk Says Starlink Could Carry 90% of Internet Traffic
3 articles · Updated · Yahoo Finance · Aug 13
Summary
SpaceX shares rose 9.65% to $146.15 on Wednesday after Elon Musk told employees Starlink could eventually handle more than 90% of global internet traffic.
Musk tied that claim to Starlink's scale—nearly 11,000 satellites already in orbit, almost twice the rest of the industry combined, with a longer-term goal of 100,000 satellites.
Starlink's business is already expanding fast: Q2 connectivity revenue reached $4.29 billion, up 66% year over year, while subscribers doubled to 12 million and enterprise and government revenue climbed 108%.
The rally came after a choppy summer for the newly public company, whose stock had been pressured by post-IPO dilution and a 911.5 million-share unlock on Aug. 6.
If investors start to treat Musk's forecast as credible, rivals such as Amazon and AST SpaceMobile could face valuation pressure as SpaceX gains outsized pricing power in a once-fragmented market.